Siyata Mobile's Strategic Pivot: A Deep Dive into the Merger with Core Gaming

Julian WestFriday, Feb 28, 2025 7:10 am ET
3min read

Siyata Mobile Inc. (SYTA), a global developer and vendor of Push-to-Talk over Cellular (PoC) handsets and accessories, has announced a definitive merger agreement with Core Gaming, a privately-held, global gaming developer and publisher. This strategic move represents a significant shift for Siyata, as it seeks to unlock shareholder value and tap into the higher-growth gaming sector. The merger is expected to close in the second quarter of 2025, subject to regulatory approval.



Core Gaming: A Powerhouse in Mobile Gaming
Core Gaming is an international gaming developer and publisher with an impressive track record. It has developed, published, and marketed over 2,000 casual mobile games in over 140 countries, engaging 40 million monthly active users and achieving over 600 million downloads. In fiscal 2024, Core Gaming had unaudited gross revenues of approximately $80 million. The company's unique, algorithm-driven technology gives it an edge in user acquisition and has led to a 50% boost in content production and a 40% reduction in production time.

Siyata's Strategic Pivot: A Reverse Merger in Disguise?
The merger between Siyata and Core Gaming is valued at $160 million, with Core Gaming shareholders receiving Siyata common shares based on a $160M valuation divided by the 10-day VWAP. Legacy Siyata shareholders will receive a stock dividend ensuring a minimum of 10% ownership in the combined entity. This valuation disparity, with Core Gaming valued at over 51 times Siyata's current market cap, suggests that this merger is primarily a vehicle for Core Gaming to access public markets rather than a traditional merger of equals.

SYTA Market Cap, P/E(TTM)...
Name
Date
Market Cap(USD)
P/E(TTM)
P/S
Siyata MobileSYTA
20250227
11.23M
-0.56
0.83


Implications for Shareholders
The transaction structure reveals significant dilution for existing Siyata shareholders, who will collectively maintain only 10% ownership in the combined entity through a future stock dividend. This implies approximately 90% dilution for Siyata shareholders. However, this dilution provides current shareholders exposure to the higher-growth gaming sector, which could potentially lead to increased shareholder value in the long run.

For Core Gaming shareholders, the merger represents an opportunity to become publicly traded at a pivotal time in the gaming industry. By merging with Siyata, Core Gaming gains access to public markets, which can provide additional capital and liquidity for the company. This could facilitate further growth and expansion for Core Gaming.

Risks and Challenges
While the merger presents exciting opportunities for both companies, there are also risks and challenges to consider. The integration of the PoC communications and gaming industries may present significant challenges, and the fairness opinion valuing Core Gaming at $160 million warrants scrutiny. Investors should closely monitor regulatory approval progress and potential closing conditions that could impact deal completion in Q2 2025.

In conclusion, Siyata Mobile's merger with Core Gaming represents a dramatic strategic pivot that effectively constitutes a reverse merger. While this move may lead to significant dilution for existing Siyata shareholders, it also provides exposure to the higher-growth gaming sector. For Core Gaming shareholders, the merger offers an opportunity to access public markets and facilitate further growth and expansion. As the merger progresses, investors should closely monitor the regulatory approval process and potential risks and challenges that may arise.